SBI Chairman Pratip Chaudhuri had repeatedly maintained that a bank like his, which has a good retail deposit base and does not depend on wholesale funding, does not feel the need to hike interest rates.

Others did it due to the spike in short-term borrowing rates in the money market, he had said.

On the deposits front, SBI increased its offering for products maturing in 7 days, 179 days, 211 days and less than a year by one percentage point to 7.50 per cent each, the statement said.

The SBI official said competitive pressures resulted in the deposit rate increase.

"At least 7-8 banks have increased their offerings and we had to increase it," the official said.

Deposit rates have been increased in two other maturities in varying proportions.